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I'll give thumbs up :) A venture capital firm wants to invest in your venture called bubble that you started 2 years ago. For bubble,
I'll give thumbs up :)
A venture capital firm wants to invest in your venture called "bubble" that you started 2 years ago. For "bubble", the venture capital firm is using a target annual compound rate of return of 20%. You expect to sell "bubble" for $20 million in 4 years and you own 100,000 shares now. 1. How much money should you ask from a venture capital firm in exchange for 40% ownership stake in your company? 2. What is the share price of bubble at which the venture capital firm will be buying shares in this case? Please show steps and explain how you got the calculationsStep by Step Solution
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